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risk
by leon on April 9, 2009
The airline industry goes from bad to worse. A crumbling global economy means fewer seats on planes declining profits for the world's biggest airlines.
More details here.The big problem lies in their fixed costs. As Morningstar analyst Basili Alukos told reporters, it's a high fixed cost business which means you have the same costs per flight. Combine that with fewer passengers, and you get lower earnings.
It will be interesting, and sickening, to see how many airlines file for bankruptcy.
Permalink: Airlines in tailspin
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